I am a senior citizen. This year my health insurance premium increased by more than 30% and I’m finding it difficult to pay. I have had this policy for the past 14 years but now the cost has become too high. I am required to pay over ₹50,000 for coverage of ₹2 lakh. Can I port the product? What are my other options?
– Name withheld on request
Let me say first, you are not alone. Many senior citizens today face steep health insurance premium hikes, especially after crossing a certain age. A 30% increase is substantial, and it is understandable that paying over ₹50,000 annually for just ₹2 lakh of coverage feels disproportionate.
Your first option is to port your health insurance policy. The Insurance Regulatory and Development Authority of India allows you to shift your existing policy to another insurer without losing the benefits of continuity, such as waiting periods for pre-existing diseases.
In case you decide to port, look at the claim settlement ratio, network of hospitals in the city, and the benefits the new product will offer. Do check room rent capping and treatment sub-limits. You need to start the process 45 days before the policy expires by filing in the portability form and proposal form. Ensure that your current medical conditions are fully disclosed.
The second option is choose a deductible-based plan. Here’s how it works. You keep basic coverage (say ₹2 lakh or ₹3 lakh) and pay a deductible amount in case of a claim. A deductible is the amount you agree to pay out of your own pocket before the insurance company starts paying for your medical bills. This can significantly reduce the annual premium while offering protection against high-value claims.
You should also review how much coverage you really need. Given high medical inflation, ₹2 lakh coverage is quite low today. Even if you stay with your current insurer, you should explore increasing your cover. Some insurers allow you to increase the sum insured at renewal, subject to underwriting.
Finally, you should negotiate on premium prices and seek discounts. Some insurers offer loyalty discounts, family discounts (if you insure a spouse), or incentives if you agree to higher deductibles or co-pays. Don’t hesitate to ask your existing insurer for the options available. Some insurers also give a discount if you choose two- or three-year policies in advance.
You have spent 14 years building continuity — that is a big asset. You should definitely explore porting to a more economical plan while protecting your continuity benefits. Deductible-based models can offer much better value for money. Before making a final decision, compare plans carefully, understand exclusions, and consider consulting an experienced insurance advisor to help you make the best choice based on your needs and budget.
Shilpa Arora is co-founder & COO of Insurance Samadhan.
